It is also providing a new twist to the European Court of Justice’s landmark ruling in the Bosman case, which allows footballers to move to another club in the EU without a fee being paid once their contract expires.

Collins, a key player in Scotland’s international team, took advantage of Belgian player Jean-Marc Bosman’s successful legal fight last year and transferred to Monaco, which ended this season as French first division champions.

The free transfer is being contested by Collins’ former club Glasgow Celtic, which is seeking 4 million ecu in compensation from Monaco to take account of the player’s age, previous earnings and international record.

The Scottish footballer’s former employers argue that the Bosman ruling cannot be applied since Monaco is not part of the EU. They have taken their case to the Union of European Football Associations and the International Federation of Football Associations, which have passed it on to the European Commission.

The dispute has now been taken up by Scottish Labour MEP Bill Miller, who has been told by Commission President Jacques Santer that Monaco “is integrated within the customs territory of the Community and is subject to certain Community secondary legislation” (ie value added tax).

Social Affairs Commissioner Pádraig Flynn has been even more precise, stating in answer to a parliamentary question that “as a matter of principle, Monaco is not part of the Community for the purpose of the free movement of workers”. He added, however, that the Commission believed the Bosman ruling did apply to such a transfer.

“Given that AS Monaco plays regularly in the French national football league and that a number of the club’s matches are played on a regular basis on French territory, such a transfer would retain a sufficiently close link with the Community.” he explained.

Since the Bosman ruling was based on the right of free movement within the Union, Miller believes fundamental issues are at stake. “I asked them whether a plumber from Glasgow who moved to Monaco and went once a week to Marseilles to unblock a drain would have the right of free movement and was told ‘no’,” he said.

“What we are getting here is a situation where there is one set of rules for one group of people and one for everyone else. I want to get the whole situation clarified.”